Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — Q1 2021 Earnings Presentation
19 slides from Stellar Bancorp's earnings presentation, Apr 28, 2021
Slide 1: CBTX, Inc. First Quarter 2021 Investor Presentation
CBTX, Inc. First Quarter 2021 \ Investor Presentation NASDAQ: CBTX
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
2 SAFE HARBOR STATEMENT AND NON-GAAP FINANCIAL MEASURES NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP (generally accepted accounting principles) financial measures, including tangible equity, tangible assets, tangible book value per share, tangible equity to tangible assets
Slide 3: Company Snapshot
The Bank Built or Business 3 • Gross loans increased from March by $269.4 million due to originations of $336.1 million of PPP loans during Q2 offset by paydowns/payoffs • Total commercial loans (1) were 86.7% of total loans at June 30, 2020 • At June 30, 2020, 76.4% of loans are Houston-based • Foc
Slide 4: Financial Highlights
4 FINANCIAL HIGHLIGHTS (1) PPP Loans, Net are included in Loans, Net above. See page 12 for further details. (2) See Appendix for reconciliation of non-GAAP financial measures. (3) Pre-provision net revenue is net income, with the provision for credit losses and income tax expense added back. Financ
Slide 5: Financial Highlights (Continued)
5 FINANCIAL HIGHLIGHTS (Continued) (1) Annualized. (2) See Appendix for reconciliation of non-GAAP financial measures. (3) Efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income and noninterest income. Financial Highlights Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1
Slide 6: Stable Core Deposits
The Bank Built or Business 6 Stable Core Deposits(1)(2) (1) Core deposits defined as total deposits less jumbo time deposits (time deposits over $100,000). (2) 2018 – 2020 figures as of year end 12/31. Q1 2021 figures as of 3/31/2021. DEPOSITS • Gross loans increased from March by $269.4 million due
Slide 7: Loan Portfolio Composition
The Bank Built or Business 7 Loan Portfolio Composition(2) (1) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. (2) 2018 – 2020 figures as of year end 12/31. Q1 2021 figures as of 3/31/2021. (3) See page 10 for information about how the Comp
Slide 8: Commercial Loans
The Bank Built or Business COMMERCIAL LOANS 8 Multi-family ($418M) • Operating lines of credit, fixed asset financing and real estate loans to industrial companies involved in the construction, modification, support and maintenance of petrochemical plants Industrial Construction/Equipment Rental Mul
Slide 9: Construction and Development Loans
The Bank Built or Business CONSTRUCTION AND DEVELOPMENT LOANS 9 (1) Total capital of CommunityBank of Texas, N.A., the wholly-owned subsidiary of the Company. Construction and Development Loans - 3/31/2021 Balance (000) Percentage of Capital(1) Commitment (000) Commercial $ 169,956 36.4% $ 226,320 L
Slide 10: Oil and Gas Loans
The Bank Built or Business OIL AND GAS LOANS 10 • DIRECT - Loans to an entity with more than 50% of its revenue related to the well-head, oil in the ground or extracting oil or gas. This includes any activity, product or service related to the oil and gas industry, such as exploration and production
Slide 11: Paycheck Protection Program
11 PAYCHECK PROTECTION PROGRAM (1) All PPP loans are classified as Commercial and Industrial loans per regulatory guidelines. (2) Annualized. • Originated 834 new PPP loans with principal balances totaling $122.3 million during Q1 2021 as part of the third round of PPP financing • As of 3/31/2021, t
Slide 12: Loan Deferrals/COVID At Risk
The Bank Built or Business 12 LOAN DEFERRALS/COVID AT RISK • Provided deferral arrangements to customers to maintain their financial strength through the COVID-19 pandemic and in line with regulatory guidance • Generally approved deferrals to provide time and payment relief • Majority of borrowers w
Slide 13: Allowance for Credit Losses
The Bank Built or Business ALLOWANCE FOR CREDIT LOSSES 13 • Participating in the Paycheck Protection Program offered under the Cares Act •____ PPP loans outstanding, with average loan size of ___ at June 30, 2020 • SBA origination fees of $11.2 M through 6/30/2020. • Processing additional applicatio
Slide 14: NPA and Net Charge-Offs
The Bank Built or Business NPA AND NET CHARGE-OFFS 14 REVENUE • Net interest margin (NIM) remained strong, impacted by lower interest rates and lower yielding PPP loans • Average loan yield (excluding PPP loans) of 4.75% for Q2 2020 • • Average loan yield on PPP loans of 2.28% • Cost of interest bea
Slide 15: Revenue and Efficiency
The Bank Built or Business REVENUE AND EFFICIENCY 15 REVENUE • Net interest margin (NIM) remained strong, impacted by lower interest rates and lower yielding PPP loans • Average loan yield (excluding PPP loans) of 4.75% for Q2 2020 • • Average loan yield on PPP loans of 2.28% • Cost of interest bear
Slide 16: CommunityBank of Texas: Here to Serve
16 At CommunityBank of Texas, we’re committed to building strong, honest relationships. We strive to keep our clients’ and partners’ needs at the forefront of everything we do. And we measure our success by the success we help create for them. OUR VISION Here to Serve. OUR POSITIONING To experienced
Slide 17: Appendix
APPENDIX
Slide 18: Non-GAAP Reconciliations
18 NON-GAAP RECONCILIATIONS Our management uses certain non-GAAP financial measures to evaluate performance. We have included in this presentation information related to these non-GAAP financial measures for the applicable periods presented. The following tables reconcile, as of the dates set forth
Slide 19: Non-GAAP Reconciliations (Continued)
19 NON-GAAP RECONCILIATIONS (Continued) (000) Q1 2020 Q2 2020 Q4 2020 Q3 2020 Q1 2021 Total Shareholders' Equity $ 545,349 $ 546,451 $ 540,921 $ 537,356 $ 536,874 Goodwill (80,950) (80,950) (80,950) (80,950) (80,950) Other Intangibles (3,991) (4,171) (4,303) (4,496) (4,700) Tangible Equity $ 460,408